Albertsons Companies (ACI) AI Stock Analysis

• Market Cap: $10.84B
• Dividend Yield: 2.89%
• Average Volume (3M): 7.56M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.09
• Revenue Growth: 2.08%
• EPS Growth: -1.63%
• Country: US
• Employees: 108,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.44
• Shares Outstanding: 549,307,560
• 10 Day Avg. Volume: 10,560,562
• 30 Day Avg. Volume: 7,556,614
• PEG Ratio: -0.47
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 15.91
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.12
• Enterprise Value/Ebitda: 6.42
• 1Y Price Target: $23.17
• Price Target Upside: 17.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 65 Neutral
• Price Target: $20.50 ▲(3.85% Upside)

Albertsons' stock score is driven by solid financial performance and attractive valuation, despite technical indicators suggesting limited short-term momentum. The positive outlook from the earnings call, focusing on digital growth and strategic initiatives, supports a favorable long-term perspective.

Positive Factors

E-commerce Growth

Sustained e-commerce growth indicates strong digital adoption and positions Albertsons well in the expanding online grocery market.

Pharmacy Sector Expansion

Growth in the pharmacy sector enhances revenue diversification and strengthens Albertsons' competitive position in healthcare services.

Loyalty Program Expansion

Expanding loyalty program membership boosts customer retention and transaction frequency, supporting long-term revenue stability.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Albertsons' ability to invest in growth initiatives.

Gross Margin Decline

Declining gross margins suggest rising operational costs, which could pressure profitability and limit future earnings potential.

Store Closures

Store closures may reduce market presence and revenue potential, indicating challenges in optimizing the retail footprint.

Albertsons Companies Business Overview & Revenue Model

Company Description

Albertsons Companies, Inc. (ACI) is one of the largest food and drug retailers in the United States, operating a diverse portfolio of grocery stores, pharmacies, and fuel centers. Founded in 1939, the company manages various well-known brands, including Albertsons, Safeway, Vons, and Jewel-Osco, among others. Its offerings encompass a wide range of products, including fresh produce, meat, dairy, bakery items, and pharmacy services, aiming to serve the everyday needs of its customers across multiple regions.

How the Company Makes Money

Albertsons Companies generates revenue primarily through the sale of grocery and pharmacy products in its stores. The company's revenue model is driven by several key streams: first, the retail sale of food and non-food items, which constitutes the majority of its revenue; second, pharmacy sales, including prescription medications and health-related products; and third, fuel sales from its gas stations. Additionally, Albertsons benefits from loyalty programs and private label products, which enhance customer retention and margins. Strategic partnerships with suppliers and manufacturers also contribute to its earnings by allowing for promotional activities and cost efficiencies. Furthermore, the company's investment in e-commerce and delivery services has expanded its customer base and increased sales, particularly during the pandemic and in the growing online grocery market.

Albertsons Companies Financial Statement Overview

Summary

Albertsons demonstrates steady revenue growth and sound cash generation capabilities despite facing profitability challenges. The balance sheet reflects high leverage but shows signs of stabilization. Continued focus on improving operational efficiency and managing debt levels will be crucial for sustaining growth and enhancing shareholder value.

Income Statement

Albertsons shows a stable revenue growth with recent TTM revenue at $81.01 billion compared to $80.39 billion in the previous year, indicating a modest growth trajectory. However, net income has slightly declined, resulting in a net profit margin decrease. The gross profit margin remains healthy, but the decline in EBIT and EBITDA margins suggests rising operational costs affecting profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio, reflecting significant leverage at a level typical for the grocery industry. Despite this, the equity ratio shows slight improvement, indicating some strengthening of financial stability. Return on equity has decreased due to lower net income, signaling challenges in generating returns for shareholders.

Cash Flow

Albertsons maintains a positive free cash flow, though it has decreased compared to previous periods. The operating cash flow to net income ratio signifies efficient cash generation relative to net income. However, the declining free cash flow growth rate suggests potential pressures on future cash availability for investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2023	Dec 2022
Income Statement
Total Revenue	81.01B	80.39B	80.39B	79.24B	79.24B	77.65B
Gross Profit	22.25B	22.26B	22.26B	22.05B	22.05B	21.76B
EBITDA	3.89B	4.08B	4.08B	4.53B	4.53B	4.85B
Net Income	954.30M	958.60M	958.60M	1.30B	1.30B	1.51B
Balance Sheet
Total Assets	26.47B	29.31B	29.31B	28.79B	28.79B	28.75B
Cash, Cash Equivalents and Short-Term Investments	151.00M	339.20M	339.20M	212.00M	212.00M	477.20M
Total Debt	14.31B	14.18B	14.18B	14.24B	14.24B	15.01B
Total Liabilities	23.25B	25.92B	25.92B	26.05B	26.05B	27.14B
Stockholders Equity	3.22B	3.39B	3.39B	2.75B	2.75B	1.61B
Cash Flow
Free Cash Flow	501.30M	749.40M	749.40M	628.20M	628.20M	700.00M
Operating Cash Flow	2.47B	2.68B	2.68B	2.66B	2.66B	2.85B
Investing Cash Flow	-1.83B	-1.89B	-1.89B	-1.75B	-1.75B	-1.98B
Financing Cash Flow	-786.20M	-684.10M	-684.10M	-1.18B	-1.18B	-3.37B

Albertsons Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACI, the sentiment is Positive. The current price of 19.74 is above the 20-day moving average (MA) of 17.76, above the 50-day MA of 18.56, and below the 200-day MA of 20.29, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 69.13 is Neutral, neither overbought nor oversold. The STOCH value of 91.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACI.

Albertsons Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFM	72 Outperform	$10.92B	23.03	36.94%	―	16.83%	52.71%
KR	71 Outperform	$45.72B	17.46	24.83%	1.90%	-2.13%	3.22%
WMK	66 Neutral	$1.71B	17.21	7.86%	1.97%	2.49%	15.99%
ACI	65 Neutral	$10.84B	11.68	32.04%	2.89%	2.08%	-1.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GO	54 Neutral	$1.51B	193.69	0.68%	―	8.47%	-85.17%
IMKTA	52 Neutral	$1.37B	24.76	3.58%	0.90%	-7.96%	-64.67%

Albertsons Companies Corporate Events

Albertsons Companies Holds Annual Stockholders Meeting

On August 7, 2025, Albertsons Companies held its annual meeting of stockholders where several key proposals were voted on. Directors were elected for the upcoming year, Deloitte & Touche LLP was ratified as the independent accounting firm, and executive compensation was approved. However, stockholder proposals on food waste reporting, human rights policy, and reproductive health care risks were not approved, indicating a focus on traditional business operations over expanded social responsibility reporting.

The most recent analyst rating on (ACI) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.